Business Wire | Aug 2, 2021 04:05PM EDT

Boise Cascade Company Reports Second Quarter 2021 Results

Aug. 02, 2021

BOISE, Idaho--(BUSINESS WIRE)--Aug. 02, 2021--Boise Cascade Company ("Boise Cascade," the "Company," "we," or "our") (NYSE: BCC) today reported net income of $302.6 million, or $7.62 per share, on sales of $2.4 billion for the second quarter ended June 30, 2021, compared with net income of $33.6 million, or $0.85 per share, on sales of $1.2 billion for the second quarter ended June 30, 2020.

"Our associates in both businesses performed with focus and dedication to capitalize on the strength in residential construction, delivering exceptional results while supporting our customers and supplier partners. Additionally, as a tribute to our associates' commitment to safety, I'm proud to report we completed one of our safest quarters on record," stated Nate Jorgensen, CEO. "As we look to the third quarter, the downward commodity pricing trends experienced in recent weeks have created a challenging environment, and we are focused on mitigating their impact without sacrificing customer service. The strength of our current balance sheet position allows us to remain focused on executing our strategy, including future organic and acquisition growth opportunities."

Second Quarter 2021 Highlights

2Q 2021 2Q 2020 % change

(in thousands, except per-share data and percentages)

Consolidated Results

Sales $ 2,443,161 $ 1,242,760 97 %

Net income 302,556 33,586 801 %

Net income per common share - diluted 7.62 0.85 796 %

Adjusted EBITDA ^1 430,323 71,776 500 %

Segment Results

Wood Products sales $ 594,569 $ 281,505 111 %

Wood Products income 213,761 17,074 1,152 %

Wood Products EBITDA ^1 227,889 31,005 635 %

Building Materials Distribution sales 2,172,744 1,134,260 92 %

Building Materials Distribution 206,338 43,210 378 %income

Building Materials Distribution 212,255 48,794 335 %EBITDA ^1

^1 For reconciliations of non-GAAP measures, see summary notes at the end ofthis press release.

As both a manufacturer and a distributor, our second quarter 2021 financial results were favorably impacted by higher commodity wood products pricing compared to pricing in the same period last year, driven by continued robust construction activity during second quarter 2021. While not subject to the significant price fluctuations of commodity products, demand also exceeded supply for many of the general line and engineered wood products (EWP) distributed by Building Materials Distribution (BMD). Lumber pricing peaked in May 2021, then dropped sharply driven by declining repair and remodel and "do-it-yourself" activity, causing hesitancy in the marketplace because of expectations for potential price erosion. With COVID-19 vaccines and easing pandemic restrictions, people are spending less time at home on home improvement projects, resulting in reduced demand from our home center customers.

In the second quarter 2021, total U.S. housing starts increased 43% compared to the same period in 2020. Single-family housing starts, the primary driver of our sales volumes, also increased 42%. On a year-to-date basis through June 2021, total and single-family housing starts increased 25% and 30%, respectively, compared with the same period in 2020.

Wood Products

Wood Products' sales, including sales to BMD, increased $313.1 million, or 111%, to $594.6 million for the three months ended June 30, 2021, from $281.5 million for the three months ended June 30, 2020. The increase in sales was driven primarily by higher plywood prices, as plywood demand in the second quarter outpaced industry production levels, driving the favorable pricing. Higher sales volumes and net sales prices for I-joists and LVL (collectively referred to as EWP) also increased compared to the prior period. In addition, improved lumber sales prices and plywood sales volumes contributed to the increase in sales. Comparative average net selling prices and sales volume changes for EWP and plywood are as follows:

2Q 2021 vs. 2Q 2020 2Q 2021 vs. 1Q 2021



Average Net Selling Prices

LVL 7% 3%

I-joists 8% 3%

Plywood 206% 58%

Sales Volumes

LVL 22% 8%

I-joists 53% 6%

Plywood 8% 11%

Wood Products' segment income increased $196.7 million to $213.8 million for the three months ended June 30, 2021, from $17.1 million for the three months ended June 30, 2020. The increase in segment income was due primarily to higher plywood, EWP, and lumber sales prices, as well as higher EWP sales volumes. These improvements were offset partially by higher wood fiber costs, as well as increased selling and distribution expenses of $1.3 million.

Building Materials Distribution

BMD's sales increased $1,038.5 million, or 92%, to $2,172.7 million for the three months ended June 30, 2021, from $1,134.3 million for the three months ended June 30, 2020. Compared with the same quarter in the prior year, the overall increase in sales was driven by sales price and volume increases of 83% and 9%, respectively. By product line, commodity sales increased 167%, general line product sales increased 26%, and sales of EWP (substantially all of which is sourced through our Wood Products segment) increased 52%.

BMD segment income increased $163.1 million to $206.3 million for the three months ended June 30, 2021, from $43.2 million in the comparative prior year quarter. The improvement in segment income was driven by a gross margin increase of $187.9 million, resulting from improved sales volumes and gross margins on substantially all product lines, particularly commodity products, compared with second quarter 2020. The margin improvement was offset partially by increased selling and distribution expenses of $25.9 million.

Unallocated Corporate Costs

Unallocated corporate expenses increased $1.8 million to $10.3 million for the three months ended June 30, 2021, from $8.5 million for the same period in the prior year. As part of our self-insured risk retention program, corporate absorbed approximately $3.4 million of estimated insurance losses resulting from a fire at our BMD Phoenix location. These losses were offset partially by lower incentive compensation driven by the departure of an officer and related forfeiture of accrued incentive compensation.

Balance Sheet and Liquidity

Boise Cascade ended second quarter 2021 with $653.8 million of cash and cash equivalents and $345.3 million of undrawn committed bank line availability, for total available liquidity of $999.1 million. The Company had $444.2 million of outstanding debt at June 30, 2021.

We expect capital expenditures in 2021 to total approximately $90 million to $100 million. Included in our capital spending range is the completion of a log utilization center project at our Florien plywood and veneer plant, a new door assembly operation in Houston, and expansion of our distribution capabilities in the Nashville market. This level of capital expenditures could increase or decrease as a result of a number of factors, including acquisitions, efforts to accelerate organic growth, exercise of lease purchase options, our financial results, future economic conditions, availability of engineering and construction resources, and timing and availability of equipment purchases.

Dividends

On June 28, 2021, our board of directors declared a supplemental dividend of $2.00 per share on our common stock, payable on July 30, 2021, to stockholders of record on July 15, 2021. At June 30, 2021, we accrued $78.7 million in "Dividends payable" on our Consolidated Balance Sheets, representing our supplemental dividend declaration. On July 29, 2021, our board of directors declared a quarterly dividend of $0.10 per share on our common stock, payable on September 15, 2021, to stockholders of record on September 1, 2021.

Future dividend declarations, including amount per share, record date and payment date, will be made at the discretion of our board of directors and will depend upon, among other things, legal capital requirements and surplus, our future operations and earnings, general financial condition, contractual obligations, restrictions imposed by our asset-based credit facility and the indenture governing our senior notes, applicable laws, and other factors that our board of directors may deem relevant.

Outlook

In recent months, the effects of the COVID-19 vaccine and COVID-19 safety protocols have resulted in fewer pandemic-related disruptions to both our manufacturing and distribution locations. Although many restrictions related to COVID-19 have been lightened, we continue to conduct business with certain modifications to mill and distribution center housekeeping and cleanliness protocols, employee travel, employee work locations, and virtualization or cancellation of certain sales and marketing events, among other modifications. In addition, we continue to actively monitor evolving developments, including the impact of COVID-19 variants, and may take actions that alter our business operations as may be required by federal, state, or local authorities, or that we determine are in the best interests of our employees, customers, suppliers, communities, and stockholders.

Economic uncertainty due to the pandemic continues. However, low mortgage rates, continuation of work-from-home practices by many in the economy, and demographics in the U.S. have created a favorable demand environment for new residential construction, particularly single-family housing starts, which we expect to continue in 2021 and into next year. As of July 2021, the Blue Chip Economic Indicators consensus forecast for 2021 and 2022 single- and multi-family housing starts in the U.S. were 1.60 million and 1.58 million units, respectively, compared with actual housing starts of 1.38 million in 2020, as reported by the U.S. Census Bureau. Although we believe that current U.S. demographics support the higher level of forecasted housing starts, and many national home builders are reporting strong near-term backlogs, labor shortages and supply induced constraints on residential construction activity may continue to extend build times and limit activity. In addition, while the age of the U.S. housing stock and limited home inventory availability will continue to provide a favorable backdrop for repair and remodel spending, we expect the recent decline in home improvement demand to continue near-term as travel restrictions are rescinded and pent-up demand for leisure spending occurs.

As a wholesale distributor of a broad mix of commodity products and a manufacturer of certain commodity products, we have sales and profitability exposure to declines in commodity product prices. Lumber pricing was very volatile during second quarter 2021, with rapidly rising prices in April and most of May followed by sharp price declines during the remainder of the quarter. Our BMD segment purchases and resells a broad mix of commodity products with periods of increasing prices providing the opportunity for higher sales and increased margins, while declining price environments expose us to declines in sales and profitability. Current composite panel and lumber prices have declined by approximately 53% and 48% from levels at the end of second quarter 2021. Future commodity product pricing and commodity input costs could be volatile in response to capacity restoration and industry operating rates, the impact of COVID-19 on residential construction, net import and export activity, transportation constraints or disruptions, inventory levels in various distribution channels, and seasonal demand patterns.

About Boise Cascade

Boise Cascade Company is one of the largest producers of engineered wood products and plywood in North America and a leading U.S. wholesale distributor of building products. For more information, please visit the Company's website at www.bc.com.

Webcast and Conference Call

Boise Cascade will host a webcast and conference call to discuss second quarter earnings on Tuesday, August 3, 2021, at 11 a.m. Eastern.

To participate in the conference call, dial 844-795-4410 and use participant passcode 6669007 (international callers should dial 661-378-9637). To join the webcast, go to the Investor Relations section at www.bc.com and select the Event Calendar link.

A replay of the conference call will be available from Tuesday, August 3, 2021, at 2 p.m. Eastern through Tuesday, August 10, 2021, at 2 p.m. Eastern. Replay numbers are 855-859-2056 for U.S. callers and 404-537-3406 for international callers with a passcode of 6669007. The archived webcast will be available in the Investor Relations section of Boise Cascade's website.

Use of Non-GAAP Financial Measures

We refer to the terms EBITDA and Adjusted EBITDA in this earnings release and the accompanying Quarterly Statistical Information as supplemental measures of our performance and liquidity that are not required by or presented in accordance with generally accepted accounting principles in the United States (GAAP). We define EBITDA as income (loss) before interest (interest expense and interest income), income taxes, and depreciation and amortization. Additionally, we disclose Adjusted EBITDA, which further adjusts EBITDA to exclude the change in fair value of interest rate swaps.

We believe EBITDA and Adjusted EBITDA are meaningful measures because they present a transparent view of our recurring operating performance and allow management to readily view operating trends, perform analytical comparisons, and identify strategies to improve operating performance. We also believe EBITDA and Adjusted EBITDA are useful to investors because they provide a means to evaluate the operating performance of our segments and our Company on an ongoing basis using criteria that are used by our management and because they are frequently used by investors and other interested parties when comparing companies in our industry that have different financing and capital structures and/or tax rates. EBITDA and Adjusted EBITDA, however, are not measures of our liquidity or financial performance under GAAP and should not be considered as alternatives to net income (loss), income (loss) from operations, or any other performance measure derived in accordance with GAAP or as alternatives to cash flow from operating activities as a measure of our liquidity. The use of EBITDA and Adjusted EBITDA instead of net income (loss) or segment income (loss) have limitations as analytical tools, including: the inability to determine profitability; the exclusion of interest expense, interest income, and associated significant cash requirements; and the exclusion of depreciation and amortization, which represent unavoidable operating costs. Management compensates for these limitations by relying on our GAAP results. Our measures of EBITDA and Adjusted EBITDA are not necessarily comparable to other similarly titled captions of other companies due to potential inconsistencies in the methods of calculation.

Forward-Looking Statements

This press release includes statements about our expectations of future operational and financial performance that are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Statements preceded or followed by, or that otherwise include, the words "believes," "expects," "anticipates," "intends," "project," "estimates," "plans," "forecast," "is likely to," and similar expressions or future or conditional verbs such as "will," "may," "would," "should," and "could" are generally forward-looking in nature and not historical facts. Such statements are based upon the current beliefs and expectations of our management and are subject to significant risks and uncertainties. The accuracy of such statements is subject to a number of risks, uncertainties, and assumptions that could cause our actual results to differ materially from those projected, including, but not limited to, prices for building products, changes in the competitive position of our products, commodity input costs, the effect of general economic conditions, the effect of COVID-19, mortgage rates and availability, housing demand, housing vacancy rates, governmental regulations, unforeseen production disruptions, as well as natural disasters. These and other factors that could cause actual results to differ materially from such forward-looking statements are discussed in greater detail in our filings with the Securities and Exchange Commission. Forward-looking statements speak only as of the date of this press release. We undertake no obligation to revise them in light of new information. Finally, we undertake no obligation to review or confirm analyst expectations or estimates that might be derived from this release.

Boise Cascade Company

Consolidated Statements of Operations

(in thousands, except per-share data) (unaudited)

Three Months Ended Six Months Ended

June 30 March 31, June 30 2021 2021 2020 2021 2020



Sales $ 2,443,161 $ 1,242,760 $ 1,821,316 $ 4,264,477 $ 2,413,294



Costs and expenses

Materials,labor, andotheroperating 1,864,523 1,048,902 1,450,434 3,314,957 2,041,172 expenses(excludingdepreciation)

Depreciationand 20,420 19,899 19,539 39,959 55,231 amortization

Selling anddistribution 130,736 103,566 120,917 251,653 203,029 expenses

General andadministrative 17,988 18,755 25,262 43,250 34,839 expenses

Loss oncurtailment of - 38 - - 1,707 facility

Other (income) (281 ) (170 ) (97 ) (378 ) (1 )expense, net

2,033,386 1,190,990 1,616,055 3,649,441 2,335,977



Income from 409,775 51,770 205,261 615,036 77,317 operations



Foreigncurrency 147 409 154 301 (464 )exchange gain(loss)

Pensionexpense (19 ) (302 ) (19 ) (38 ) (689 )(excludingservice costs)

Interest (6,347 ) (6,633 ) (5,875 ) (12,222 ) (13,054 )expense

Interest 51 190 59 110 845 income

Change in fairvalue of (25 ) (514 ) 1,024 999 (2,828 )interest rateswaps

(6,193 ) (6,850 ) (4,657 ) (10,850 ) (16,190 )



Income before 403,582 44,920 200,604 604,186 61,127 income taxes

Income tax (101,026 ) (11,334 ) (51,448 ) (152,474 ) (15,341 )provision

Net income $ 302,556 $ 33,586 $ 149,156 $ 451,712 $ 45,786



Weightedaverage common sharesoutstanding:

Basic 39,442 39,312 39,355 39,399 39,238

Diluted 39,688 39,387 39,630 39,633 39,381



Net income per common share:

Basic $ 7.67 $ 0.85 $ 3.79 $ 11.47 $ 1.17

Diluted $ 7.62 $ 0.85 $ 3.76 $ 11.40 $ 1.16



Dividendsdeclared per $ 2.10 $ 0.10 $ 0.10 $ 2.20 $ 0.20 common share

Wood Products Segment

Statements of Operations

(in thousands, except percentages) (unaudited)

Three Months Ended

Six Months Ended

June 30

March 31, 2021

June 30

2021

2020

2021

2020

Segment sales

$

594,569

$

281,505

$

432,335

$

1,026,904

$

601,566

Costs and expenses

Materials, labor, and other operating expenses (excluding depreciation)

353,916

239,626

308,608

662,524

513,660

Depreciation and amortization

14,128

13,931

13,346

27,474

43,534

Selling and distribution expenses

8,835

7,552

8,999

17,834

15,536

General and administrative expenses

3,872

3,451

4,319

8,191

6,463

Loss on curtailment of facility

-

38

-

-

1,707

Other (income) expense, net

57

(167

)

11

68

(171

)

380,808

264,431

335,283

716,091

580,729

Segment income

$

213,761

$

17,074

$

97,052

$

310,813

$

20,837

(percentage of sales)

Segment sales

100.0

%

100.0

%

100.0

%

100.0

%

100.0

%

Costs and expenses

Materials, labor, and other operating expenses (excluding depreciation)

59.5

%

85.1

%

71.4

%

64.5

%

85.4

%

Depreciation and amortization

2.4

%

4.9

%

3.1

%

2.7

%

7.2

%

Selling and distribution expenses

1.5

%

2.7

%

2.1

%

1.7

%

2.6

%

General and administrative expenses

0.7

%

1.2

%

1.0

%

0.8

%

1.1

%

Loss on curtailment of facility

-

%

-

%

-

%

-

%

0.3

%

Other (income) expense, net

-

%

(0.1

%)

-

%

-

%

-

%

64.0

%

93.9

%

77.6

%

69.7

%

96.5

%

Segment income

36.0

%

6.1

%

22.4

%

30.3

%

3.5

%

Wood Products Segment

Statements of Operations

(in thousands, except percentages) (unaudited)

Three Months Ended Six Months Ended

June 30 March 31, June 30 2021 2021 2020 2021 2020



Segment sales $ 594,569 $ 281,505 $ 432,335 $ 1,026,904 $ 601,566



Costs and expenses

Materials,labor, andotheroperating 353,916 239,626 308,608 662,524 513,660 expenses(excludingdepreciation)

Depreciationand 14,128 13,931 13,346 27,474 43,534 amortization

Selling anddistribution 8,835 7,552 8,999 17,834 15,536 expenses

General andadministrative 3,872 3,451 4,319 8,191 6,463 expenses

Loss oncurtailment of - 38 - - 1,707 facility

Other (income) 57 (167 ) 11 68 (171 )expense, net

380,808 264,431 335,283 716,091 580,729



Segment income $ 213,761 $ 17,074 $ 97,052 $ 310,813 $ 20,837



(percentage of sales)



Segment sales 100.0 % 100.0 % 100.0 % 100.0 % 100.0 %



Costs and expenses

Materials,labor, andotheroperating 59.5 % 85.1 % 71.4 % 64.5 % 85.4 %expenses(excludingdepreciation)

Depreciationand 2.4 % 4.9 % 3.1 % 2.7 % 7.2 %amortization

Selling anddistribution 1.5 % 2.7 % 2.1 % 1.7 % 2.6 %expenses

General andadministrative 0.7 % 1.2 % 1.0 % 0.8 % 1.1 %expenses

Loss oncurtailment of - % - % - % - % 0.3 %facility

Other (income) - % (0.1 %) - % - % - %expense, net

64.0 % 93.9 % 77.6 % 69.7 % 96.5 %



Segment income 36.0 % 6.1 % 22.4 % 30.3 % 3.5 %

Building Materials Distribution Segment

Statements of Operations

(in thousands, except percentages) (unaudited)

Three Months Ended

Six Months Ended

June 30

March 31, 2021

June 30

2021

2020

2021

2020

Segment sales

$

2,172,744

$

1,134,260

$

1,634,777

$

3,807,521

$

2,184,257

Costs and expenses

Materials, labor, and other operating expenses (excluding depreciation)

1,832,929

982,385

1,387,351

3,220,280

1,900,226

Depreciation and amortization

5,917

5,584

5,819

11,736

10,928

Selling and distribution expenses

121,901

95,958

111,920

233,821

187,381

General and administrative expenses

7,230

7,206

9,581

16,811

13,341

Other (income) expense, net

(1,571

)

(83

)

(113

)

(1,684

)

(131

)

1,966,406

1,091,050

1,514,558

3,480,964

2,111,745

Segment income

$

206,338

$

43,210

$

120,219

$

326,557

$

72,512

(percentage of sales)

Segment sales

100.0

%

100.0

%

100.0

%

100.0

%

100.0

%

Costs and expenses

Materials, labor, and other operating expenses (excluding depreciation)

84.4

%

86.6

%

84.9

%

84.6

%

87.0

%

Depreciation and amortization

0.3

%

0.5

%

0.4

%

0.3

%

0.5

%

Selling and distribution expenses

5.6

%

8.5

%

6.8

%

6.1

%

8.6

%

General and administrative expenses

0.3

%

0.6

%

0.6

%

0.4

%

0.6

%

Other (income) expense, net

(0.1

)%

-

%

-

%

-

%

-

%

90.5

%

96.2

%

92.6

%

91.4

%

96.7

%

Segment income

9.5

%

3.8

%

7.4

%

8.6

%

3.3

%

Building Materials Distribution Segment

Statements of Operations

(in thousands, except percentages) (unaudited)

Three Months Ended Six Months Ended

June 30 March 31, June 30 2021 2021 2020 2021 2020



Segment sales $ 2,172,744 $ 1,134,260 $ 1,634,777 $ 3,807,521 $ 2,184,257



Costs and expenses

Materials,labor, andotheroperating 1,832,929 982,385 1,387,351 3,220,280 1,900,226 expenses(excludingdepreciation)

Depreciationand 5,917 5,584 5,819 11,736 10,928 amortization

Selling anddistribution 121,901 95,958 111,920 233,821 187,381 expenses

General andadministrative 7,230 7,206 9,581 16,811 13,341 expenses

Other (income) (1,571 ) (83 ) (113 ) (1,684 ) (131 )expense, net

1,966,406 1,091,050 1,514,558 3,480,964 2,111,745



Segment income $ 206,338 $ 43,210 $ 120,219 $ 326,557 $ 72,512



(percentage of sales)



Segment sales 100.0 % 100.0 % 100.0 % 100.0 % 100.0 %



Costs and expenses

Materials,labor, andotheroperating 84.4 % 86.6 % 84.9 % 84.6 % 87.0 %expenses(excludingdepreciation)

Depreciationand 0.3 % 0.5 % 0.4 % 0.3 % 0.5 %amortization

Selling anddistribution 5.6 % 8.5 % 6.8 % 6.1 % 8.6 %expenses

General andadministrative 0.3 % 0.6 % 0.6 % 0.4 % 0.6 %expenses

Other (income) (0.1 ) - % - % - % - %expense, net %

90.5 % 96.2 % 92.6 % 91.4 % 96.7 %



Segment income 9.5 % 3.8 % 7.4 % 8.6 % 3.3 %

Segment Information

(in thousands) (unaudited)

Three Months Ended

Six Months Ended

June 30

March 31, 2021

June 30

2021

2020

2021

2020

Segment sales

Wood Products

$

594,569

$

281,505

$

432,335

$

1,026,904

$

601,566

Building Materials Distribution

2,172,744

1,134,260

1,634,777

3,807,521

2,184,257

Intersegment eliminations

(324,152

)

(173,005

)

(245,796

)

(569,948

)

(372,529

)

Total net sales

$

2,443,161

$

1,242,760

$

1,821,316

$

4,264,477

$

2,413,294

Segment income

Wood Products

$

213,761

$

17,074

$

97,052

$

310,813

$

20,837

Building Materials Distribution

206,338

43,210

120,219

326,557

72,512

Total segment income

420,099

60,284

217,271

637,370

93,349

Unallocated corporate costs

(10,324

)

(8,514

)

(12,010

)

(22,334

)

(16,032

)

Income from operations

$

409,775

$

51,770

$

205,261

$

615,036

$

77,317

Segment EBITDA (a)

Wood Products

$

227,889

$

31,005

$

110,398

$

338,287

$

64,371

Building Materials Distribution

212,255

48,794

126,038

338,293

83,440

See accompanying summary notes to consolidated financial statements and segment information.

Segment Information

(in thousands) (unaudited)

Three Months Ended Six Months Ended

June 30 March 31, June 30 2021 2021 2020 2021 2020

Segment sales

Wood $ 594,569 $ 281,505 $ 432,335 $ 1,026,904 $ 601,566 Products

BuildingMaterials 2,172,744 1,134,260 1,634,777 3,807,521 2,184,257 Distribution

Intersegment (324,152 ) (173,005 ) (245,796 ) (569,948 ) (372,529 )eliminations

Total net $ 2,443,161 $ 1,242,760 $ 1,821,316 $ 4,264,477 $ 2,413,294 sales



Segment income

Wood $ 213,761 $ 17,074 $ 97,052 $ 310,813 $ 20,837 Products

BuildingMaterials 206,338 43,210 120,219 326,557 72,512 Distribution

Totalsegment 420,099 60,284 217,271 637,370 93,349 income

Unallocatedcorporate (10,324 ) (8,514 ) (12,010 ) (22,334 ) (16,032 )costs

Income from $ 409,775 $ 51,770 $ 205,261 $ 615,036 $ 77,317 operations



Segment EBITDA (a)

Wood $ 227,889 $ 31,005 $ 110,398 $ 338,287 $ 64,371 Products

BuildingMaterials 212,255 48,794 126,038 338,293 83,440 Distribution

See accompanying summary notes to consolidated financial statements and segment information.

Boise Cascade Company

Consolidated Balance Sheets

(in thousands) (unaudited)

June 30, 2021 December 31, 2020



ASSETS



Current

Cash and cash equivalents $ 653,767 $ 405,382

Receivables

Trade, less allowances of $2,513 and $1,111 592,953 375,865

Related parties 412 201

Other 16,785 15,067

Inventories 727,205 503,480

Prepaid expenses and other 16,308 8,860

Total current assets 2,007,430 1,308,855



Property and equipment, net 457,291 461,456

Operating lease right-of-use assets 57,650 62,447

Finance lease right-of-use assets 28,146 29,523

Timber deposits 7,469 11,761

Goodwill 60,382 60,382

Intangible assets, net 15,962 16,574

Deferred income taxes 7,261 7,460

Other assets 5,849 7,260

Total assets $ 2,647,440 $ 1,965,718

Boise Cascade Company

Consolidated Balance Sheets (continued)

(in thousands, except per-share data) (unaudited)

June 30, 2021

December 31, 2020

LIABILITIES AND STOCKHOLDERS' EQUITY

Current

Accounts payable

Trade

$

507,237

$

307,653

Related parties

2,811

1,199

Accrued liabilities

Compensation and benefits

116,596

118,400

Income taxes payable

15,460

8,101

Interest payable

9,879

8,477

Dividends payable

78,662

-

Other

123,612

80,172

Total current liabilities

854,257

524,002

Debt

Long-term debt

444,210

443,792

Other

Compensation and benefits

28,312

25,951

Operating lease liabilities, net of current portion

50,967

56,001

Finance lease liabilities, net of current portion

30,661

31,607

Deferred income taxes

7,378

18,263

Other long-term liabilities

15,945

15,303

133,263

147,125

Commitments and contingent liabilities

Stockholders' equity

Preferred stock, $0.01 par value per share; 50,000 shares authorized, no shares issued and outstanding

-

-

Common stock, $0.01 par value per share; 300,000 shares authorized, 44,698 and 44,568 shares issued, respectively

447

446

Treasury stock, 5,367 shares at cost

(138,909

)

(138,909

)

Additional paid-in capital

538,841

538,006

Accumulated other comprehensive loss

(1,085

)

(1,078

)

Retained earnings

816,416

452,334

Total stockholders' equity

1,215,710

850,799

Total liabilities and stockholders' equity

$

2,647,440

$

1,965,718

Boise Cascade Company

Consolidated Balance Sheets (continued)

(in thousands, except per-share data) (unaudited)

June 30, 2021 December 31, 2020



LIABILITIES AND STOCKHOLDERS' EQUITY



Current

Accounts payable

Trade $ 507,237 $ 307,653

Related parties 2,811 1,199

Accrued liabilities

Compensation and benefits 116,596 118,400

Income taxes payable 15,460 8,101

Interest payable 9,879 8,477

Dividends payable 78,662 -

Other 123,612 80,172

Total current liabilities 854,257 524,002



Debt

Long-term debt 444,210 443,792



Other

Compensation and benefits 28,312 25,951

Operating lease liabilities, net of current 50,967 56,001 portion

Finance lease liabilities, net of current portion 30,661 31,607

Deferred income taxes 7,378 18,263

Other long-term liabilities 15,945 15,303

133,263 147,125



Commitments and contingent liabilities



Stockholders' equity

Preferred stock, $0.01 par value per share; 50,000shares authorized, no shares issued and - - outstanding

Common stock, $0.01 par value per share; 300,000shares authorized, 44,698 and 44,568 shares 447 446 issued, respectively

Treasury stock, 5,367 shares at cost (138,909 ) (138,909 )

Additional paid-in capital 538,841 538,006

Accumulated other comprehensive loss (1,085 ) (1,078 )

Retained earnings 816,416 452,334

Total stockholders' equity 1,215,710 850,799

Total liabilities and stockholders' equity $ 2,647,440 $ 1,965,718

Boise Cascade Company

Consolidated Statements of Cash Flows

(in thousands) (unaudited)

Six Months Ended June 30

2021

2020

Cash provided by (used for) operations

Net income

$

451,712

$

45,786

Items in net income not using (providing) cash

Depreciation and amortization, including deferred financing costs and other

40,826

56,295

Stock-based compensation

3,503

3,345

Pension expense

38

1,023

Deferred income taxes

(10,481

)

(1,501

)

Change in fair value of interest rate swaps

(999

)

2,828

Loss on curtailment of facility (excluding severance)

-

1,476

Other

1,017

164

Decrease (increase) in working capital

Receivables

(219,112

)

(129,532

)

Inventories

(225,006

)

41,102

Prepaid expenses and other

(7,448

)

(6,989

)

Accounts payable and accrued liabilities

248,139

95,505

Pension contributions

(153

)

(1,062

)

Income taxes payable

7,253

8,616

Other

1,890

1,220

Net cash provided by operations

291,179

118,276

Cash provided by (used for) investment

Expenditures for property and equipment

(31,502

)

(28,849

)

Proceeds from sales of assets and other

500

406

Net cash used for investment

(31,002

)

(28,443

)

Cash provided by (used for) financing

Borrowings of long-term debt, including revolving credit facility

28,000

-

Payments of long-term debt, including revolving credit facility

(28,000

)

-

Dividends paid on common stock

(8,373

)

(8,562

)

Tax withholding payments on stock-based awards

(2,729

)

(3,309

)

Other

(690

)

(1,763

)

Net cash used for financing

(11,792

)

(13,634

)

Net increase in cash and cash equivalents

248,385

76,199

Balance at beginning of the period

405,382

285,237

Balance at end of the period

$

653,767

$

361,436

Summary Notes to Consolidated Financial Statements and Segment Information

The Consolidated Statements of Operations, Segment Statements of Operations, Consolidated Balance Sheets, Consolidated Statements of Cash Flows, and Segment Information presented herein do not include the notes accompanying the Company's Consolidated Financial Statements and should be read in conjunction with the Company's 2020 Form 10-K and the Company's other filings with the Securities and Exchange Commission. Net income for all periods presented involved estimates and accruals.

Boise Cascade Company

Consolidated Statements of Cash Flows

(in thousands) (unaudited)

Six Months Ended June 30

2021 2020

Cash provided by (used for) operations

Net income $ 451,712 $ 45,786

Items in net income not using (providing) cash

Depreciation and amortization, including deferred 40,826 56,295 financing costs and other

Stock-based compensation 3,503 3,345

Pension expense 38 1,023

Deferred income taxes (10,481 ) (1,501 )

Change in fair value of interest rate swaps (999 ) 2,828

Loss on curtailment of facility (excluding severance) - 1,476

Other 1,017 164

Decrease (increase) in working capital

Receivables (219,112 ) (129,532 )

Inventories (225,006 ) 41,102

Prepaid expenses and other (7,448 ) (6,989 )

Accounts payable and accrued liabilities 248,139 95,505

Pension contributions (153 ) (1,062 )

Income taxes payable 7,253 8,616

Other 1,890 1,220

Net cash provided by operations 291,179 118,276



Cash provided by (used for) investment

Expenditures for property and equipment (31,502 ) (28,849 )

Proceeds from sales of assets and other 500 406

Net cash used for investment (31,002 ) (28,443 )



Cash provided by (used for) financing

Borrowings of long-term debt, including revolving 28,000 - credit facility

Payments of long-term debt, including revolving credit (28,000 ) - facility

Dividends paid on common stock (8,373 ) (8,562 )

Tax withholding payments on stock-based awards (2,729 ) (3,309 )

Other (690 ) (1,763 )

Net cash used for financing (11,792 ) (13,634 )



Net increase in cash and cash equivalents 248,385 76,199



Balance at beginning of the period 405,382 285,237



Balance at end of the period $ 653,767 $ 361,436

Summary Notes to Consolidated Financial Statements and Segment Information

The Consolidated Statements of Operations, Segment Statements of Operations, Consolidated Balance Sheets, Consolidated Statements of Cash Flows, and Segment Information presented herein do not include the notes accompanying the Company's Consolidated Financial Statements and should be read in conjunction with the Company's 2020 Form 10-K and the Company's other filings with the Securities and Exchange Commission. Net income for all periods presented involved estimates and accruals.

EBITDA represents income before interest (interest expense and interest income), income taxes, and depreciation and amortization. Additionally, we disclose Adjusted EBITDA, which further adjusts EBITDA to exclude the(a) change in fair value of interest rate swaps. The following table reconciles net income to EBITDA and Adjusted EBITDA for the three months ended June 30, 2021 and 2020, and March 31, 2021, and the six months ended June 30, 2021 and 2020:

Three Months Ended

Six Months Ended

June 30

March 31, 2021

June 30

2021

2020

2021

2020

(in thousands)

Net income

$

302,556

$

33,586

$

149,156

$

451,712

$

45,786

Interest expense

6,347

6,633

5,875

12,222

13,054

Interest income

(51

)

(190

)

(59

)

(110

)

(845

)

Income tax provision

101,026

11,334

51,448

152,474

15,341

Depreciation and amortization

20,420

19,899

19,539

39,959

55,231

EBITDA

430,298

71,262

225,959

656,257

128,567

Change in fair value of interest rate swaps

25

514

(1,024

)

(999

)

2,828

Adjusted EBITDA

$

430,323

$

71,776

$

224,935

$

655,258

$

131,395

The following table reconciles segment income and unallocated corporate costs to EBITDA and adjusted EBITDA for the three months ended June 30, 2021 and 2020, and March 31, 2021, and the six months ended June 30, 2021 and 2020:

Three Months Ended Six Months Ended

June 30 March 31, June 30 2021 2021 2020 2021 2020

(in thousands)

Net income $ 302,556 $ 33,586 $ 149,156 $ 451,712 $ 45,786

Interest 6,347 6,633 5,875 12,222 13,054 expense

Interest income (51 ) (190 ) (59 ) (110 ) (845 )

Income tax 101,026 11,334 51,448 152,474 15,341 provision

Depreciationand 20,420 19,899 19,539 39,959 55,231 amortization

EBITDA 430,298 71,262 225,959 656,257 128,567

Change in fairvalue of 25 514 (1,024 ) (999 ) 2,828 interest rateswaps

Adjusted EBITDA $ 430,323 $ 71,776 $ 224,935 $ 655,258 $ 131,395

The following table reconciles segment income and unallocated corporate costs to EBITDA and adjusted EBITDA for the three months ended June 30, 2021 and 2020, and March 31, 2021, and the six months ended June 30, 2021 and 2020:

Three Months Ended Six Months Ended

June 30 March 31, June 30 2021 2021 2020 2021 2020

(in thousands)

Wood Products

Segment income $ 213,761 $ 17,074 $ 97,052 $ 310,813 $ 20,837

Depreciationand 14,128 13,931 13,346 27,474 43,534 amortization

EBITDA $ 227,889 $ 31,005 $ 110,398 $ 338,287 $ 64,371



BuildingMaterials Distribution

Segment income $ 206,338 $ 43,210 $ 120,219 $ 326,557 $ 72,512

Depreciationand 5,917 5,584 5,819 11,736 10,928 amortization

EBITDA $ 212,255 $ 48,794 $ 126,038 $ 338,293 $ 83,440



Corporate

Unallocated $ (10,324 ) $ (8,514 ) $ (12,010 ) $ (22,334 ) $ (16,032 )corporate costs

Foreigncurrency 147 409 154 301 (464 )exchange gain(loss)

Pension expense(excluding (19 ) (302 ) (19 ) (38 ) (689 )service costs)

Change in fairvalue of (25 ) (514 ) 1,024 999 (2,828 )interest rateswaps

Depreciationand 375 384 374 749 769 amortization

EBITDA (9,846 ) (8,537 ) (10,477 ) (20,323 ) (19,244 )

Change in fairvalue of 25 514 (1,024 ) (999 ) 2,828 interest rateswaps

Corporate $ (9,821 ) $ (8,023 ) $ (11,501 ) $ (21,322 ) $ (16,416 )adjusted EBITDA



Total Company $ 430,323 $ 71,776 $ 224,935 $ 655,258 $ 131,395 adjusted EBITDA

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